Publicado: Jun 28, 2024 17:50
[SMM Weekly Report on Coke Market] This week, driven by the consistently strong performance of coke fundamentals, coke prices rose slightly by 50-55 yuan/ton. In terms of supply, coke enterprises maintained a high operating rate this week, and supply remained stable. On the demand side, the output of steel mills' molten iron continued to increase, and steel mills were relatively active in purchasing, resulting in strong demand for coke. In the future, as coke prices rise, coke enterprises' profits will be restored, and their profits will generally return to above the break-even point. In addition, the current inventories of coke enterprises and steel mills are both low. Therefore, it is expected that coke supply will continue to maintain a high and stable operation next week. On the demand side, as the steel consumption slack season deepens, the output of steel mills' molten iron will be difficult to continue to increase, and the demand for coke may decline somewhat. Therefore, it is expected that the coke fundamentals will gradually shift to a strong supply and weak demand next week. However, as steel mills still have profits, their motivation for production cuts is not strong, and the probability of a significant drop in coke demand is not high. Therefore, on the whole, it is expected that coke prices will remain stable next week.

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